"CPI inflation was recorded at 0.28 percent (mtm) in July 2018, down from 0.59 percent (mtm) the month earlier," Bank Indonesia (BI) executive director for communications Agusman said here on Thursday.
This positive development was in line with the seasonal trends after Eid-ul-Fitr, primarily due to Administered prices (AP) deflation. Historically, headline inflation in July 2018 was consistent with the post-Eid average over the past four years, at 0.27 percent (mtm).
"Therefore, as of July 2018, CPI inflation stands at 2.18 percent (ytd), or 3.18 percent (yoy), up from 3.12 percent (yoy) the month earlier," he noted.
AP posted deflation after transportation fares experienced a sharp correction in the wake of Eid-ul Fitr.
Consequently, he noted that AP deflation stood at 0.68 percent (mtm) in July 2018, contrasting the 1.38 percent (mtm) inflation recorded the month earlier.
Post-Eid deflation was deeper in the reporting period than the average rate over the past four years at 0.07 percent (mtm).
"Deflationary pressures on administered prices stemmed primarily from lower airfares and intercity fares as demand returned to normal after Eid-ul-Fitr," he remarked.
Annually, therefore, administered prices recorded inflation of 2.11 percent (yoy), down from 2.88 percent (yoy) the month earlier.
Inflationary pressures on volatile foods (VF) remained stable and under control at 0.90 percent (mtm), unchanged on the previous period.
Purebred chicken eggs and meat as well as bird?s eye chilies were the main contributors to VF inflation. Conversely, shallots, red chilies, and beef experienced price corrections, which helped to offset pressures on VF inflation.
Annually, VF inflation stood at 5.36 percent (yoy), increasing from 4.60 percent (yoy) the month earlier.
Editing by Andi Abdussalam
Reporter: Azis Kurmala
Editor: Fardah Assegaf
Copyright © ANTARA 2018
